Today we feature the newest IRS collection procedures from our IRS Advisor columnist, Robert E. McKenzie, J.D. (seen here).
The IRS has added two menacing collection alternatives. In addition to assigning collection duties to private collection agencies, some taxpayers could lose their right to a United States passport.
For some hard-to-collect bills, the law now requires—rather than just permits—the IRS to use private collectors when:
• The tax bill has been assigned for collection, but more than a year has passed without any interaction.
• When more than 1/3 of the statute of limitations has expired, and no IRS employee has been assigned to collect it.
The State Department can revoke, deny or limit passports most taxpayers the IRS certifies as having a seriously delinquent tax debt over $50,000.
Seriously delinquent tax debt is when a:
• Notice of federal tax lien has been filed and all administrative remedies have lapsed or been exhausted.
• Or a Levy has been issued.
For a rundown of IRS collection procedures and a related CPE course see cpamagazine.com.